- New Zealand Dollar looks like created a top near the 0.6880 area against the US dollar.
- A major support trend line on the 4-hours chart was broken recently, suggesting a change in trend from bullish to bearish.
- The NZDUSD pair is now below the 100 simple moving average on the 4-hours chart, but finding bids near 200 MA.
- In the US, the ISM New York Index will be released by NAPM-New York, which may impact the market sentiment in the short term.
The NZDUSD pair after trading close to the 0.6900 area failed to maintain gains and started to move lower. There was a critical support trend line on the 4-hours chart, which was breached recently to ignite a downside move.
The pair is now below the 50 and 100 simple moving average on the 4-hours chart, which is a sign that sellers are in control. However, the pair is currently finding bids near 200 MA (H4), which may act as a pivot moving ahead.
On the downside, the next support area can be around the 50% Fib retracement level of the last wave from the 0.6431 low to 0.6880 high.
ISM New York Index
Today, there is a minor risk event lined up in the US, as the ISM New York Index, which assesses business conditions among manufacturers and non-manufacturing firms/organizations doing business in the New York area will be released by NAPM-New York. The last reading stands at 60.7, and it would be interesting to see whether there will be a rise in the index in December 2015 or not.
If there is an increase in the index, then there is a possibility that the NZDUSD pair may break the 200 MA (H4) and trade further lower.
Overall, the trend looks bearish for NZDUSD, and if sellers stay in control a move below the 200 MA (H4) is possible moving ahead.